The Perfect Time For Passive Income With Crypto: When Should I Start?
Main Takeaways:
Growing your capital is a personal journey that can be made easier with passive income.
Before you commit your funds, you should make sure you are in the right financial position to start saving.
Binance Earn offers a variety of vehicles for people at different stages in their lives.
While passive income with crypto is generally a good way to grow your capital successfully, you should consider your financial position and lifestyle before starting. Figure out which product suits you best with Binance Earn.
Passive crypto income is an increasingly popular way to build wealth, but it isn’t a one-size-fits-all strategy. For some, it may be wiser to clear off some debt before getting started. For those who want to start building their savings, however, there is Binance Earn.
Binance Earn is a platform offering a diverse selection of passive income opportunities with crypto. These opportunities come in the form of financial products with competitive interest rates and additional rewards. The one thing they have in common? They do the earning for you. Before you get to earning passive income, take a moment to check if you’re ready to earn passive income with crypto.
Is Passive Crypto Income Right For Me?
Passive crypto saving is a strategy that usually requires a longer time frame, or more “time in the market”, and therefore you may have gotten advice to start saving as early as possible. Indeed, cryptocurrency can be a viable tool to achieve your financial goals but are they really perfect for everyone? The short answer is no, and here’s a list of reasons why it may not be right for you.
I have a negative cash flow
If you find yourself spending more money than you earn, then you probably have a negative net cash flow. Before taking on passive income opportunities, which often require more risks and expenditure in the form of capital, it may be wise to reassess your spending habits for greater financial security.
I have debts with high-interest rates
Deciding between using your spare cash for investing and paying off your debts? Unless you are confident of earning more passive income as compared to the interest that will accumulate if you leave a debt unpaid, you should clear those debts first.
I have a short timeline to earn money
If you’re only looking for ways to find cash fast, then passive investing may not be right for you. While there are products that do feature higher returns, passive investing is generally not the right tool for a quick cash grab, unless you have significant funds at your disposal.
Passive Income For Every Stage of Life
Now that you’ve established that you’re ready to earn some passive income, here’s a general guide that features products you can consider during different phases of life. Binance Earn has a passive investment product for just about everyone - read on to find out more.
If you’re still in college...
Between classes and exploring what you want to do in the future, you may not feel like you have the money or time to start saving. Fear not, there are low-cost options available for you to start earning. For example, you can easily start staking with just $10 a week with Locked Staking. With a total of 30 different tokens to choose from, guaranteed capital earnings, which prevents you from losing your original stake, and zero fees, Locked Staking is good for anyone who is at least 18 years old and looking to start earning without committing too much capital and time.
If you’ve just started working...
Congratulations, you’ve just landed your first real job! However, between meeting deadlines and managing your duties, you definitely don’t have time to juggle additional passive income streams. Workaholics who want to grow their wealth can take a look at Auto-Invest, a feature that lets you earn on autopilot once you set it up. This handy feature not only lets you set recurring crypto buys with your stablecoin funds, but also automatically deposits those assets into a Flexible Savings account that allows you to earn interest on your crypto buys. Essentially, Auto-Invest is a convenient crypto savings account that you can squirrel money away in. Just set, forget and let your assets do their thing!
If you’re making and saving decent money...
Once you’ve settled into your job and have gotten into the groove of setting money aside, you should see your savings starting to add up. Instead of leaving the money in your savings account, you might want to consider diversifying into higher-risk, higher reward products like [DeFi Staking and Dual Investment] to protect your savings from inflation, or to build your wealth at a faster pace. Since you’ve built a sizable savings portfolio, you may feel more comfortable taking some risks and venturing into non-savings investments. Of course, risk-taking is personal, and only you can decide if you want to risk your savings in a more volatile environment. Just remember to DYOR and read up on the possible risks before investing.
Other Considerations
Take note that several of the passive income opportunities would need you to have some crypto. If you’re interested in getting some to take advantage of the Binance Earn products, you can start by getting some BUSD. BUSD is one of the few stablecoins that are compliant with regulatory requirements and might be a good crypto choice for beginners. Remember, these are only guidelines. Other considerations to factor in include your financial goals, your timeline for achieving those goals, your risk tolerance, and extra financial responsibilities that you may have to take on at any stage of your life.
Conclusion
There’s no perfect time to start growing your wealth. Once you’re aware of your financial position and are ready to take that next step, you can start browsing on Binance Earn, no matter what stage you’re at in your savings journey.
For more tips on how to use Binance Earn to make money work for you, you can read the following FAQs and guides:
(Support) What Is Binance Earn and How to Use It
(Support) Binance Earn FAQ Library
(Academy) A Beginner's Guide to Earning Passive Income With Crypto
(Blog) Earn Passive Income With Cryptocurrencies: Put Your Crypto To Work With Binance Earn
(Academy) Your Guide to Binance Earn
This article was edited on July 27, 2022.